Parent Loans

Origination Fees

The total origination fee for loans under the Parent PLUS program is 4.228% of the amount borrowed for loans disbursed after October 1, 2020. The origination fee is subject to change annually at the end of September. Origination fees for the next academic year are released in June.

Interest Rates

New rates will be established each June for the upcoming year. The interest rate for a loan is applied to the life of the loan (fixed-rate). As a result, it is likely you will have a set of fixed-rate loans, each with a different interest rate. See studentaid.gov for new rate information annually. 

Additional Interest Rate Support

• Understanding interest rates and fees—Find out how interest is calculated.
• Information for military members—If you are a member of the military, you may be eligible for special interest benefits relating to your federal student loans.

Loan Limits:

The limit on Direct PLUS Loan borrowing for new borrowers is $20,000 per year, per child. The aggregate loan limit is $65,000 per Dependent student.

Loan Eligibility:

• Eligibility is not based on financial need.
• A credit check is required.  Borrowers who have an adverse credit history must meet additional requirements to qualify.
• Borrowers may typically borrow up to the Cost of Attendance, minus any Estimated Financial Assistance (EFA), as needed.  Be sure to only accept the amount you need to cover your education.
• File a FAFSA Annually: You must have a valid FAFSA on file with Baylor University to determine general eligibility.
  • Be a US citizen or an eligible non-citizen
    The student and parent applicant/ borrower must be eligible citizens or eligible non-citizens.
  • Have a valid Social Security number
    (with exception of students from the Republic of the Marshall Islands, Federated States of Micronesia, or the Republic of Palau)
  • Show that you are qualified to obtain a college education by:
    • Having a high school diploma or a recognized equivalent - OR -
    • Complete a high school education in a homeschool setting approved under state law
      (or—if state law does not require a homeschooled student to obtain a completion credential—completing a high school education in a homeschool setting that qualifies as an exemption from compulsory attendance requirements under state law)
• Sign the certification statement on the FAFSA form stating that you are not in default, owe money for a federal grant, meet other general eligibility requirements for federal student aid, and will use federal student aid for educational purposes only.
• Be enrolled at least half-time.
• Be enrolled in a program that leads to a degree.
• Maintain Satisfactory Academic Progress (SAP)
• Be offered any eligible Title IV PELL Grant.

Additional eligibility requirements may apply to certain situations including non-U.S. citizens, students with criminal convictions, students with intellectual disabilities, or ability-to-benefit eligible students.

Adverse Credit History

To qualify for a Parent PLUS Loan, you cannot have an adverse credit history. A credit check is conducted on all Parent PLUS Loan applicants. Your credit history is considered adverse if your credit report shows that you are experiencing any of the following credit conditions:

• Accounts with a total outstanding balance greater than $2,085 that are 90 or more days delinquent as of the date of the credit report, or that have been placed in collection or charged off during the two years preceding the date of the credit report.
• Default determination during the five years preceding the date of the credit report.
• Bankruptcy discharge during the five years preceding the date of the credit report.
• Repossession during the five years preceding the date of the credit report.
• Foreclosure during the five years preceding the date of the credit report.
• Charge-off/write-off of a federal student aid debt during the five years preceding the date of the credit report.
• Wage garnishment during the five years preceding the date of the credit report.
• Tax lien during the five years preceding the date of the credit report.

PLUS Loans and Adverse Credit History Options

A credit check will be performed during the application process. If you have an adverse credit history, you may still receive a parent PLUS loan through one of these two options:

1. The borrower may obtain an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the PLUS loan if you do not repay it.
2. Documenting to the satisfaction of the U.S. Department of Education that there are extenuating circumstances relating to your adverse credit history by applying for an appeal. 

With either option 1 or option 2, you also must complete credit counseling for parent PLUS loan borrowers and a new Master Promissory Note with every endorsed or appealed application that is approved.

A third option is available to denied Parent PLUS applicants ONLY: Additional Direct Unsubsidized Loan funds are made available to students whose parents are unable to receive a Parent PLUS Loan. To automatically receive consideration for these additional funds, the parent applicant must select that they will “not to pursue a PLUS application” as the Credit Action Choice in their denied Parent PLUS application. Leaving the Credit Action Choice as "Undecided" on a denied Parent PLUS Loan application will NOT result in Additional Direct Unsubsidized Loan funds being automatically offered.  See “Next Steps for Denied Parent PLUS Applicants” below.

Right to Decline a PLUS Loan

• You have the right to decline any financial aid that you are offered.
• Before your loan money is disbursed, you may cancel all or part of your loan at any time.
• After your loan money is disbursed, you may return all or a portion of your loan proceeds that credited to your account, to your lender within 90 days of the notice that we send you.
• If you want to cancel or return loan proceeds, please submit a Contact Us form.
• You have a number of rights and responsibilities pertaining to borrowing student loans. Click here for a list of important rights and responsibilities of which you should be aware.
• You will receive a Loan Disclosure Statement (plain language version) specific to your loan before your loan is disbursed.

Parent PLUS Loan Applicant/Borrower Additional Requirements

• Be the dependent student's biological or adoptive parent.  The student's stepparent is eligible, if the biological or adoptive parent has remarried at the time of application.
• Assets of the parent the student lives with must be reported on the FAFSA. However, this may not be the same parent who applies for the PLUS loan.

Continuing students who have already received a Federal Direct Loan before July 1, 2026, may be eligible for Legacy Provisions. These provisions allow current students and their parents to temporarily continue to borrow under the prior federal loan rules and limits. That means there is no annual or aggregate loan limit on Parent PLUS loans for those under Legacy Provisions. 

The eligibility for Legacy Provisions is determined by federal law and is automatically applied if a student qualifies. It cannot be waived or declined.

Legacy Provisions Qualification:

• A Direct Loan was disbursed before July 1, 2026.
• The student must remain in the same program at the same school. Undergraduates may change majors as long as they remain at the undergraduate level.
• There is no withdrawal or break in enrollment.
• The student must be within their expected time to complete the program (the shorter of three academic years or the remaining program length).

• First, complete the Free Application for Federal Student Aid (FAFSA). 
  • Baylor School Code 003545
• Review your Student Aid Report (SAR) and financial assistance listed in your award notification to determine if a PLUS loan is the best fit for you.
• Timing of Application
  • The credit check for a PLUS loan is valid for 180 days and it is important to submit your application no earlier than 180 days before the upcoming first day of class.
  • The studentaid.gov website will accept applications for an upcoming academic year beginning April 15, but Baylor University may not process the application until mid-June.  Monitor your account in BearWeb for processing.
• Submit a Parent PLUS Application at studentaid.gov/plus-app/parent/landing
  • Select a Loan Period
    • Fall/Spring Loan - August to May
    • Fall Only Loan- August to December
    • Spring - January to May
    • Summer - May to August
      • We encourage you to select a loan period for the entire academic year (if you are attending the entire year), rather than a semester at a time to avoid submitting an application (and possibly a credit check) multiple times. 
      • Loans requested for the entire academic year will be split into two substantially equal disbursements. 
        Adjustments can be made upon request by submitting a Contact Us form.
      • Annual limits associated with Direct Loans are based on the SAY or BBAY defined academic year the student is in.  Learn more about SAY/BBAY and loan periods under “Alternative Loans” and “Loan Periods” below. 
      • Summer is a trailer term for students in a SAY.  New loan applications must be submitted for this term.  Adjustments can be made upon request by submitting a Contact Us form.  Increase requests beyond what you were approved for in your application must be made at studentaid.gov. 
  • Specify a Loan Amount
    • We encourage you to review your expenses carefully and only apply for the amount you truly need to support your educational success.
    • Utilize our PLUS Loan Calculator tool to understand PLUS Loans fees and determine the amount you would like to request borrow.
      • “Maximum Amount” – we will process an approved loan to the max amount available (Cost of Attendance minus All other Financial Aid received.)
      • Or Define a specified amount.
  • Specify how you would like to receive the funds:
    • In most cases, we will apply the loan money to your students account to pay tuition, fees, and any other authorized charges.  
    • If there is money left over, you can elect to have the money paid to:
      • The Parent Borrower OR
      • Refunded to your Student
  • Approval Process
    • The Department of Education will send a confirmation of approval or denial to you and our office (if you select Baylor to receive the information – our school code is 003545).
    • If denied, the parent borrower will be presented with options covered in “PLUS Loans and Adverse Credit History” above.

• Parent PLUS borrowers must complete a master promissory note (MPN) at studentaid.gov/mpn/parentplus/landing. The MPN contains important terms and conditions of Parent PLUS Loans, as well as borrower rights and responsibilities.
  • The parent borrower completes the MPN
  • The MPN is good for ten years.
    If a MPN does not connect to a loan that disburses, it will be closed to any new loans after one year.
  • If a loan has an approved appeal or endorser, the MPN is good for this loan only. If a new loan is approved later, a new MPN must be completed.
  • If you are taking out Parent PLUS loans for more than one child, you will need to sign separate MPNs for loans you receive for each child.
• If your loan application has been approved following an appeal or endorser approval, the parent borrower must complete Credit Counseling for Parent PLUS borrowers.
• Processing
  • We begin processing new loan applications mid-June for the upcoming aid year.
  • We process new loan applications or updates to applications through the academic year Monday-Friday.
  • It can take 5 to 10 business days (or longer during peak periods) to process an approved application.
  • Monitor your email for updates from Baylor and the Department of Education.
  • Monitor BearWeb for information regarding processing of applications.
• Loan Disbursement
  • Once all requirements are met, accepted Federal educational loans will schedule to disburse, no earlier than ten days before the first day of class.
  • In most cases, we will apply the loan money to your student account to pay tuition, fees, and any other authorized charges. 
  • If there is money left over, refunds will be made to either the parent borrower or student, depending on how it was elected during the application process.
• Reporting
  • Federal educational loan information will be submitted to NSLDS and accessible by authorized agencies, lenders, and institutions, for students, or parents of students, who enter into an agreement regarding Federal Educational loans [HEOA 489 amended HEA Sec. 485B] – Access Federal Educational loan information here: https://nsldsfap.ed.gov/login.
• After your loan is disbursed, you will be contacted by your loan servicer.  You will receive a Loan Disclosure Statement (plain language version) specific to your loan before your loan is disbursed.

In the denied Parent PLUS Application, select one of the following Credit Action Choices:

• “I want to obtain an endorser”
  • The borrower may obtain an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the PLUS loan if you do not repay it.
  • Request your that your endorser submits an endorser addendum, for further credit review and application consideration.
• “I want to provide documentation of extenuating circumstances.”
  • Submit documentation to the U.S. Department of Education stating that there are extenuating circumstances relating to your adverse credit history by applying for an appeal. 
• “I do not want to pursue a Direct PLUS Loan at this time.”
  • This ends the Direct Parent PLUS Loan application process at this time.
  • When this is selected, students WILL automatically be considered for Additional Direct Unsubsidized Loan funding.*  This process can take 5 to 10 business days after Baylor receives confirmation of the denial and credit action choice.
• “Undecided”
  • This choice keeps the denied application open for endorsement or appeal for the academic year, or until the credit expires, whichever comes first.
  • Leaving the credit action choice as “undecided” will NOT result in automatic review of Additional Direct Unsubsidized Loan funding.

*The maximum amount for an Additional Unsubsidized Direct Loan will vary based on your classification and your financial aid package. Generally, freshman and sophomore students will qualify for an additional $4,000. Junior and senior students will typically qualify for an additional $5,000. If your parent later qualifies for a PLUS loan, any undisbursed monies remaining for the Additional Direct Unsubsidized Loan will be canceled and the PLUS loan will be applied. Like other subsidized and unsubsidized loans, the Additional Direct Unsubsidized Loan is a loan in the student’s name and does not require a cosigner.  

Understanding the details of repayment on your federal student loan is extremely important.  The Direct Parent PLUS loan program generally:

• Does not have a grace period.
• If you do not request a deferment, you will be expected to begin making payments after the loan is fully disbursed.
• Your loan servicer will provide you with a loan repayment schedule.
• There are repayment options available:
  • Standard Repayment Plan
  • Graduated Repayment Plan
  • Extended Repayment Plan
  • Parent borrowers can become eligible for an additional repayment plan—the Income-Contingent Repayment Plan—by consolidating their parent PLUS loans into a Direct Consolidation Loan.
• Your billing statement will explain how much to pay and when.
• You are required to repay all loans that you have borrowed.  Under special circumstances, there are student loan forgiveness options.

Repayment Support Information

• Who is my loan servicer? 
  • Find out at the Student focused National Student Loan Data System (NSLDS) 
• What support does the Department of Education provide? 
  • Repayment Options & Making Payments:  Repaying your Federal Student Loans
  • Steps to Repayment Success:  Student Loan Repayment Checklist
• Sample Re-Payment Schedule

Federal financial aid regulations limit the total amount of financial aid you can receive to your Cost of Attendance (COA). This is the estimated total of your educational expenses for the academic year.

COA Loan Borrowing Impacts

If you have borrowed loans up to your full COA and later receive additional aid (such as a scholarship, grant, stipend, or departmental award), federal regulations require the Financial Aid Office to reduce your loan amount so your total aid remains within the COA limit.

If your loan funds have already disbursed and you have received a refund, you will not receive another refund after the adjustment, since those funds have already been released to you.  The adjustment will appear as a swap of funding where the new aid replaces a portion of your loan, keeping your total aid the same.

We encourage students to notify Baylor One Stop early, if you expect to receive additional awards.  Early communication helps minimize future adjustments and ensures aid remains compliant with federal regulations.

Need to Appeal Your COA?

If your educational expenses exceed Baylor’s standard Cost of Attendance, you may request a review through the Cost of Attendance Adjustment Appeal. 

Eligibility for private loans often depends on the student's credit score; therefore, a co-signer is most often required. Even if a co-signer is not required, the student can usually receive a more favorable rate with a co-signer. Private loans generally cost more than the education loans offered by the federal government but are less expensive than credit card debt. 

Some lenders offer a fixed rate product, while others offer a variable rate product. Some lenders offer both types. A fixed interest rate will not fluctuate over time. A variable interest rate moves (up or down) based on changes of an underlying index. Some variable rate loans have an interest cap which cannot be exceeded. 

Have your student review their financial aid offer, their BearWeb account, or contact Baylor One Stop to determine their maximum private loan eligibility. You should only request loan funds to cover your student's specific educational needs rather than the maximum allowed for the enrollment period. We recommend you borrow for the full academic year, not one semester at a time. Interest does not begin accruing on each portion of the loan until that portion is disbursed. Have your student calculate how much you need to borrow for the semester and double that amount to cover both the fall and spring semesters. If your student needs help preparing a personalized budget, they may make an individual appointment by emailing Financial_Foundations@baylor.edu.

When submitting a loan application with a lender, please be sure to enter your desired loan amount. 

Please use the following dates as a guide to help select the loan period you will request on a loan application with a lender. 

It is important that the start and end dates indicated on your loan application match the start and end dates of the term or terms you are needing the loan to cover. 

At Baylor University, there are two measurement categories for an academic year: a traditional academic or scheduled academic year (SAY) or Borrower-Based Academic Year (BBAY).  

Traditional Academic Year (SAY) 

• Begins in fall and ends in the spring, with summer as a non-compulsory trailer term.  
• All summer aid is packaged separately.  Summer aid is not packaged until a student enrolls in the summer term.  Summer loans must be applied for separately.  
• There are undergraduate and graduate programs that operate under a SAY. 

Borrower-Based Academic Year (BBAY) 

• Can be trimester, quarters, and contain modules. 
• Can begin at different times during the year, depending on the program, and when the student begins attending. 
• Currently, online graduate and the ABSN programs operate under a BBAY. 

Please keep in mind that the loan periods listed here are based on traditional semester or law student programs. Online programs in trimester, quarter, or borrower based academic years may have differently defined periods of enrollment that may create a different loan period.  

General Loan Periods

• Undergraduate and Graduate Students
  • Fall/Spring - August to May
  • Fall - August to December
  • Spring - January to May
  • Summer - May to August
• Law Students
  • Fall/Winter/Spring - August to April
  • Fall - August to November
  • Winter - November to January
  • Spring - February to April
  • Summer - May to August 

Some important factors for you to consider in choosing a lender include cost (interest rates and potential origination fees), flexibility (re-payment options), and customer service. Common customer service considerations include the availability of a fixed-rate loan product, account information online, deferment options, and co-signer release options. 

Baylor utilizes ELMSelect, a neutral lender and product comparison tool, to present the lenders on our preferred lender list to you. Access our lender list by visiting: 

ELMSelect

IMPORTANT:  You are NOT restricted to the lenders presented on our preferred lender list. You should not be directed to any specific lender by the University; you may choose any lender and follow their application process. 

We provide this list as a resource for you to research and make the best selection for your educational funding needs. This list is not exhaustive and other options are available. You do not need to borrow from a lender on this list. 

Preferred Lender Arrangements

Placement on the lender list is the result of our annual evaluation of the lender's borrower benefits offered, timely processing, flexibility, historical certification levels at Baylor University, and customer service to you and our staff. To ensure lenders on this list are selected based on the best interests of the borrowers we specifically review: 

• Payment of origination or other fees on behalf of the borrower.
• Highly competitive interest rates, or other terms, conditions, and/or provisions. 
• High quality loan servicing. 
• Additional benefits beyond typical standard terms, conditions, and/or provisions in loan borrowing. 

We exercise a duty of care and loyalty to our students when compiling the preferred lender list without prejudice and for the sole benefit of students and families at Baylor University.  We will not deny, impede the borrower’s choice of lender, or cause unnecessary delay in loan certification for those who choose a lender that is not included on the preferred lender list. Vendors on our preferred list were last reviewed July 2024.

When viewing Lenders on ELMSelect, PLEASE BE SURE TO: 

• Click on the VIEW button to see more information about the lender and loan options. 
• View the DETAILS to see the Lender & Servicer information to understand any vendor affiliation to other lenders on the list and loan program specific disclosures. 

Private Education Loan Self-Certification

Instructions: Obtain the Private Education Loan Applicant Self-Certification form from your lender or print it and complete Sections 2, 3 and 4. Return the completed form to your lender; do not submit it to the Financial Aid Office.

The Texas Higher Education Coordinating Board offers two loan programs, The College Access Loan and FORWARD Loan, to Texas residents who qualify. Both programs require a student meet eligibility requirements including, but not limited to, confirming Texas state residency, completion or exemption of Selective Service, meeting Satisfactory Academic Progress, and passing a credit check. Full eligibility requirements, instructions to apply, and eligible programs of study (FORWARD Loan) can all be viewed at http://www.hhloans.com/.

Students who borrow from either state loan program are subject to manageable debt limits and should be aware of their maximum borrowing eligibility.

To comply with Texas Family Code, students required to pay child support must self-disclose any arrearages exceeding 30 days. Delinquency may result in loss of eligibility for state-funded grants and loans, including the College Access Loan and the FORWARD Loan. If notified by the State of Texas of delinquency, contact Baylor OneStop for next steps.

Federal financial aid regulations limit the total amount of financial aid you can receive to your Cost of Attendance (COA). This is the estimated total of your educational expenses for the academic year.

COA Loan Borrowing Impacts

If you have borrowed loans up to your full COA and later receive additional aid (such as a scholarship, grant, stipend, or departmental award), federal regulations require the Financial Aid Office to reduce your loan amount so your total aid remains within the COA limit.

If your loan funds have already disbursed and you have received a refund, you will not receive another refund after the adjustment, since those funds have already been released to you.  The adjustment will appear as a swap of funding where the new aid replaces a portion of your loan, keeping your total aid the same.

We encourage students to notify Baylor One Stop early, if you expect to receive additional awards.  Early communication helps minimize future adjustments and ensures aid remains compliant with federal regulations.

Need to Appeal Your COA?

If your educational expenses exceed Baylor’s standard Cost of Attendance, you may request a review through the Cost of Attendance Adjustment Appeal.